An umbrella insurance policy is designed to keep you safe, and to cover any extras that your insurance doesn’t cover. It’s another form of personal liability insurance that’ll cover any claims that exceed the average homeowners, auto, and watercraft coverage. Usually, it covers anyone in the family or household depending on the policyholder’s preferences and it’ll cause any injuries that may occur or damage to their possessions. But with so many insurance policies and coverage out there, what makes an umbrella policy so special?
What can this insurance do?
If you are sued, for any sort of reason, usually, it doesn’t exceed whatever is on your homeowner’s or auto insurance depending on what the issue may be. However, there are circumstances when you will be liable for an amount that exceeds what your current insurance is. The umbrella insurance will cover any of the costs over that original amount. A few exceptions would be false imprisonment, libel, slander, etc.
How exactly does it work?
We’ve put together a few examples of how this policy works in action. A few scenarios might be:
- You’re sued by the parents of your child’s classmate because they got into a fight and your child caused physical damage like a broken arm or broken nose.
- A neighbor sues you for medical bills, lost wages, and pain and suffering because your dog got out and attacked them.
- You cause an auto accident, whether it’s purely an accident or negligence, involving multiple cars. Your auto insurance won’t be high enough to cover that many vehicles and neither will the personal liability coverage for all of the victims.
It’s understandable that things can happen out of your control, so you have to have a plan of action to keep you and your family safe.
Is it something everyone must have when getting insurance?
Technically, you don’t need to get any kind of umbrella policies. However, we currently live in a time where lawsuits are exceedingly popular even for simple incidents. While some people might need it more than others, what seems like a small issue could very easily turn into a huge lawsuit that your regular policies won’t cover. You need to protect yourself, your family, and your property, above all else.
Reach out to Bleiler Insurance today to discuss our policies and how we can help you!